MN HF3398

Amends Minnesota Statutes 2008, section 62A.17 to add a new subdivision allowing covered employees eligible for continuation coverage the right to obtain a direct conversion policy from their health carrier without first enrolling in continuation coverage.

Employers or health carriers must provide written notice of direct conversion rights to former employees at the same time they provide notice of continuation coverage rights.

Direct conversion policies must offer at least three coverage options: (1) $1,000 annual deductible with 80 percent coverage and $10,000 annual out-of-pocket limit; (2) $2,000 individual/$4,000 family deductible with 80 percent coverage and $5,000/$10,000 out-of-pocket limits; or (3) $5,950 individual/$11,900 family deductible with 100 percent coverage above deductibles.

All direct conversion policies include a $1,000,000 lifetime maximum benefit per individual and must be issued on a guaranteed-issue basis following HIPAA preexisting condition limitation rules.

Effective January 1, 2011, for terminations or layoffs beginning on or after that date; former employees may continue coverage for up to 18 months before becoming eligible for Minnesota Comprehensive Health Association coverage without preexisting condition limitations.